RFID: Radio-Frequency Identification

Radio-frequency identification or RFID, is a technology that transfers data from an electronic tag through an electronic reader via the use of radio waves.  When the electronic tag is affixed on an object such as an airplane or box, a reader can be directed at it and using radio waves will read the tag, logging the item as being present.  RFID is widely used in industries such as medicine and patient care, inventory management, logistics, and financial institutions (to track assets).

The beginnings of RFID lie with Soviet inventor Leon Theremin.  Shortly after inventing the first electronic musical instrument, he came up with “The Thing”.  It was a covert listening device that used radio waves to transmit sound.  The same technology used by Theremin was applied by British pilots as a means of identifying airplanes as friendly or from the enemy, illustrating just how far the radio waves could be transmitted.  It was the perfect setting, as there were few obstructions in the sky.  Theremin came up with the idea for The Thing as a tool for espionage during the Second World War.  He encased the listening device in a wood carving replica of the Great Seal of the United States, which was then placed in the US Ambassador’s home office in Moscow.   Soviet officials listened in on many confidential discussions during the first few years of the Cold War, thanks to The Thing.  At the end of World War II, The Thing was presented by the USSR to the US Ambassador as a gesture of peace.

Transmitting information via radio waves was all well and good (and certainly useful), but it wasn’t until 1973 that a radio transponder with memory came about.  Mario Cardullo’s device showed investors worldwide the opportunity for use in transportation, banking, security, and medical uses.  Now radio-frequency identification as we know it in the 21^stcentury was born.  Yet there was no sudden spike in usage by large corporations of government entities.  The distribution of this new RFID into the market was steady, but not as prolific as one might expect.  Costs of implementation were high, and reliability was not consistent.

Then three things changed the usability of RFID.  Through the 1980’s barcode technology was being adopted globally, which spurred an international standard for Ultra High Frequency (UHF) electromagnetic waves.  With the new standards, RFID had a chance to become more internationally usable.  In 2010 the cost of raw materials decreased, resulting in equipment and tags being cheaper.  Plus, tweaks in the technology itself resulted in a {radical|huge|drastic} increase in reliability of signal and data transfer.  Now RFID was far more practical and affordable to be used on small and large scale applications.  The largest user of RFID to date, at least in one active deployment, is the US Department of Defense, but the largest passive use goes to mammoth retailer Wal-Mart.

Today we can find RFID in use everywhere.  Toll roads in nations around the world use RFID for a faster payment method, resulting in smoother traffic flow.  Singapore put in place an RFID season parking ticket system in 2007.  Car-sharing services use RFID as a means of securely unlocking vehicles for their members.  Large equipment manufacturers and dealers use RFID for inventory management.  Public transit companies all over the world provide RFID based passes and payment cards for their users.  Office and residential buildings have put RFID door passes into use as a way to protect the security of the building.  In 2005 Las Vegas casinos began putting RFID tags in their high end chips to help combat counterfeiting.  Additionally, they track the betting habits of players and are able to spot counting mistakes by dealers.

The power of RFID lies in its reliability, accuracy and universal acceptance.  All of these benefits translate into major time and money savings, most especially for the largest players on the block.  For example, in 2005 Wal-Mart required their top 100 vendors to apply RFID tags to all shipments.  While the measure ended up causing more trouble than it was worth, the power of RFID was clear.  Wal-Mart logistics executives saw the pre-2010 RFID technology as the answer to a lot of coordination and inventory management headaches, and they had the volume to make the request to their vendors.  Unfortunately the shipping and logistics world was not ready for RFID on such a large scale.  Another five years and it would have been a different scenario.  Today we can find RFID technology in use everywhere, and it behooves any business to incorporate it into their operations.  The technology is ready; the business world is ready, now it’s your turn to bring in the latest RFID equipment.